The tax declaration of real property: what the law asks of an owner
A tax declaration is the sworn statement of a property's value that an owner files with the provincial, city or municipal assessor, and the record the assessor lists, values and assesses the property from (Sections 202 to 205). The rules are in the Local Government Code, Republic Act 7160 of 1991, with changes made in 2024 by Republic Act 12001. Each row below carries the section it comes from.
The tax declaration, section by section
Each row gives the point, the rule in short, and the section it comes from. Sections are RA 7160 unless marked.
Declaring the property
| Point | In short | Source and condition |
|---|---|---|
| Every owner | a sworn declaration of value | RA 7160 Section 202: for real property "including the improvements therein", filed with the provincial, city or municipal assessor, describing the property well enough to identify it, once every three years between 1 January and 30 June |
| Buying land or a house | within 60 days of acquiring it | Section 203: a sworn statement of its true value, filed with the assessor |
| Building a house or an extension | on completion or occupancy, whichever is first | Section 203: the Code's words are "within sixty (60) days after the acquisition of such property or upon completion or occupancy of the improvement, whichever comes earlier"; the safe course is to declare the house as soon as it is completed or first occupied. Section 210: the official who issues the building permit sends the assessor a copy within 30 days |
| Selling | notify the assessor within 60 days | Section 208: the seller notifies the mode of transfer, a description of the property and the buyer's name and address |
| Property of someone who has died, not yet divided | in the estate's or heirs' name | Section 205(b): each heir liable severally and in proportion for the tax |
| Claiming an exemption | evidence within 30 days | Section 206: from the date of the declaration; otherwise the property is listed as taxable |
If it is never declared
| Point | In short | Source and condition |
|---|---|---|
| The assessor declares it for you | in the owner's name | Section 204: when the owner does not declare it in time |
| Taxes for the years it went undeclared | up to 10 years back | Section 222: on the schedule of values then in force; no interest if paid by the end of the quarter after the notice is received, and monthly interest from receipt of the assessment otherwise |
The assessment
| Point | In short | Source and condition |
|---|---|---|
| Notice of a new or changed assessment | within 30 days | Section 223: in writing, to the person in whose name the property is declared |
| Disagreeing with it | appeal within 60 days | Section 226: from receipt of the notice, by a sworn petition to the provincial or city Board of Assessment Appeals, with the tax declarations and supporting documents. Section 231: an appeal does not stop collection of the tax as assessed, adjusted later if the appeal succeeds. Section 229(c): a further appeal to the Central Board within 30 days of receiving the decision |
| When a new assessment applies | 1 January of the next year | Section 221: a reassessment for destruction, a major change of use or another abnormal cause is made within 90 days and applies from the next quarter |
Paying the tax
| Point | In short | Source and condition |
|---|---|---|
| When the tax attaches | 1 January, as a lien on the property | Section 246: superior to any other lien, mortgage or encumbrance, until paid |
| Paying in four parts | no interest if on time | Section 250: by 31 March, 30 June, 30 September and 31 December; payments go first to arrears |
| Paying late | monthly interest, capped at 36 months | Section 255: on the unpaid amount until it is paid |
| Collecting an unpaid tax | levy on the property, or court | Section 247: collection by the city or municipal treasurer; Sections 256 and 258: a levy on the property by warrant of the provincial or city treasurer (or a Metro Manila municipal treasurer), or a court action |
| Registering a sale | needs proof the tax is paid | Section 209(b): the Register of Deeds requires a certificate that the property has been fully paid of all real property taxes due |
Changed or added in 2024
| Point | In short | Source and condition |
|---|---|---|
| Sales reported to the assessor | by the Register of Deeds, now quarterly | RA 12001 Section 23, where RA 7160 Section 209(a) set a yearly abstract: an abstract of the registry every three months, and copies of every registered sale, transfer, lease or mortgage each month |
| Amnesty on penalties and interest | two years from the Act's effectivity | RA 12001 Section 30: on real property taxes unpaid before the Act took effect, available only within two years after its effectivity, which Section 39 sets at 15 days after publication; not for property already auctioned, delinquencies under a compromise agreement, or cases pending in court. Ask the treasurer whether it is still open or has been extended |
What it means when you build or buy
- A new house is declared too. Section 203 ties it to completion or occupancy of the house, whichever comes earlier, so declare it as soon as it is completed or first occupied. The occupancy permit, a separate application to the Building Official under the Building Code, is also needed before anyone moves in, as the occupancy permit guide sets out, and the custom house design service produces the drawings the house is built from.
- A declaration and a title are two different records. The tax declaration is filed with the assessor under the Local Government Code; the title is registered with the Register of Deeds under PD 1529, covered in the land title guide. Read both before you buy.
- Unpaid tax follows the land. Section 246 makes each year's tax a lien on the property from 1 January, and a good-faith buyer still takes land subject to the two years of unpaid tax before the purchase (PD 1529, Section 44); older taxes stay collectible from the delinquent taxpayer alone.
- An undeclared house costs more later. When it is finally declared, the tax reaches back up to ten years (Section 222).
What this page does not cover
- Rates, values and discounts. Each province, city and municipality sets its own within the Code's ceilings and its own schedule of market values; this page prints none of them. The BIR keeps a separate value for the same land, explained in the zonal value guide.
- The forms and the fees. Each assessor's office publishes its own requirements; ask yours.
- Transfer taxes on a sale. Taxes other than the real property tax are outside this page.
Sources: Republic Act No. 7160, the Local Government Code of 1991, Book II, Title II, and Republic Act No. 12001, the Real Property Valuation and Assessment Reform Act, as published by the Lawphil Project.